SPLITS within the Conservative Party are emerging after more than 60 MPs - including former Cabinet members Iain Duncan Smith and Michael Gove - demand Britain leaves the single market and customs union.

The statement comes after a pro-EU campaign group released a video which contained carefully selected quotes that reportedly incorrectly suggested some Brexit supporters wanted to stay inside the single market.

The alleged misleading video was released on Saturday by Open Britain and the campaign group has since been urged to apologise after claiming leading Brexiteers want to stay within the single market.

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Chancellor Philip Hammond believes a 'bespoke arrangement' is the best way forward

Prime Minister Theresa May

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Prime Minister Theresa May is joined by children nominated by UK charities and a local school choir to switch on the Downing Street Christmas tree lights. December 8 2016.

Among those demanding a hard Brexit is Julian Knight MP, who said: “Is the sum of our ambition now to take up residence in an EU retirement home all because we are afraid of what is going on in the wider world?”

In an interview on ITV1’s Peston on Sunday, chancellor Philip Hammond said that no decision on the customs union would be taken before Britain triggered Article 50, which Theresa May is expected to do next March.

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Michael Gove is among the MPs who have signed the statement calling for a hard Brexit

Mr Hammond said: “We don’t think the best way to approach this is to assume there are fixed existing structures — the single market, the customs union, and all you have is a binary choice in relation to those.

“Britain’s is a very large economy, we have a very large amount of trade with the European Union, and the sensible way for us to approach this is to negotiate a bespoke arrangement that works for Britain and works for our European partners.”